H2 government land sales programme to have more private housing supply, first sale site in Marina South

THE government land sales (GLS) programme for the second half of 2022 will continue to have a larger supply of private housing, amid robust demand and declining inventory.

The programme comprises 6 confirmed list sites and 8 reserve list sites, which are expected to yield around 7,310 private residential units, 94,750 square metres (sq m) gross floor area (GFA) of commercial space, and 530 hotel rooms, the Ministry of National Development (MND) said on Tuesday (Jun 7).

Amid a consistently strong demand for private housing, MND is increasing the supply of private housing on the confirmed list to 3,505 units in H2, up 25.9 per cent from 2,785 units in H1, to ensure sufficient supply and to maintain market stability.

MND also expects the supply on the reserve list will give developers a good selection of sites to initiate development if they assess that there is demand. Sites on the reserve list are launched only upon successful application by a developer or when there is sufficient market interest.

On the confirmed list, there are 5 private residential sites, including 1 executive condominium (EC) site, and 1 commercial and residential site. This would yield around 3,505 private residential units (including 495 EC units) and 14,750 sq m GFA of commercial space.

The reserve list comprises 6 private residential sites, including 2 EC sites, 1 white site and 1 hotel site on River Valley Road, which can yield an additional 3,805 private residential units (including 1,000 EC units), 80,000 sq m GFA of commercial space and 530 hotel rooms.

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The 3,805-housing unit supply in the reserve list for the next half is slightly higher than the 3,715-unit supply in the current half.

Commenting on the increase in private housing supply on the confirmed list, JLL’s senior director of research and consultancy, Ong Teck Hui, said: “The URA recognises the low inventory of unsold private housing and has increased land supply in the H2 2022 GLS programme to address the shortage ... It is, nevertheless, a measured increase, possibly taking into account macroeconomic uncertainties that could affect the market.”

Giving his take, ERA Realty Network head of research and consultancy, Nicholas Mak, said the increase in supply from the confirmed list may not be enough to cool the residential property market. “Given the low inventory of unsold private housing units, demand for development sites remains strong. The government should have supplied 8 to 10 sites that can generate private housing (including EC) units on the H2 2022 confirmed list, instead of just 6, in order to moderate rising land prices., which in turn will result in ever-increasing property launch prices.”

Catherine He, head of research for Singapore at Colliers, expects the residential sites on the confirmed list will attract “a healthy level of bidding”, adding that the sites located in upcoming residential estates – such as Hillview Rise and Lentor Gardens – should also see strong demand from upgraders.

“The increase in residential units introduced will help to provide a much-needed boost for developers to shore up their land inventory, as the supply from GLS sites is gradually stepped up,” she said.

Among the confirmed-list sites announced, a residential site on Marina Gardens Lane is a new site introduced in the half-year period, located in the Marina South precinct next to Gardens by the Bay.

The Marina South precinct, which was unveiled by the Urban Redevelopment Authority in the Draft Master Plan 2013, will be a self-sufficient neighbourhood comprising a mix of retail, office, hotel and residential uses; it has also been envisioned as a sustainable, car-lite precinct.

MND expects the launch of the first sale site at Marina Gardens Lane will kick-start the development of the Marina South neighbourhood.

Analysts expect the Marina Gardens Lane site to draw attention, with Huttons Asia senior director of research Lee Sze Teck saying that it is the “best site” on the confirmed list.

“It offers a first-mover advantage to both developers and buyers,” he said, expecting the huge outlay of more than S$1 billion may attract a handful of developers.

Meanwhile, the white site on Woodlands Avenue 2 for a mixed-use development, as well as the hotel site on the H2 reserve list, were carried over from the H1 reserve list.